Question Best setup for Onlyfans income

[Rubyraknarin]

Hi!
To keep it short, I’m Thai, my partner is EU, we are making $5k+ on OF a month but expect to grow it a lot more in the coming months due to hiring an agency. We would like to go back to Thailand for a year or two where SW isn’t exactly legal so we would like to receive the income and pay tax (if applicable) in another country, open to any possible suggestions.
Cyprus sounds interesting as it only wants you to be in the country for 60 days but still doesn’t allow us to be in Thailand for more than 183 which we would like to.
I appreciate all the help and I apologise if I asked anything wrong!

 

[Sols]

Accept paying Thai tax but structure the business as a media marketing, affiliate marketing, or media consultancy business in Thailand, with another company in Cyprus or some other more liberal jurisdiction. OnlyFans pays into that company, which then pays the Thai company. Have a good lawyer draft an agreement between the two companies that's compliant with relevant laws.

That's a pretty common setup for people in similar situations and tends to work well as long as the amounts aren't too high. If you climb the rankings of OnlyFans and grow bigger, the amount of revenue risks drawing attention in Thailand and more poking and prodding is done about how the company makes so much money.

So if you're very successful, be prepared to seriously consider leaving Thailand.

 

[Rubyraknarin]

Accept paying Thai tax but structure the business as a media marketing, affiliate marketing, or media consultancy business in Thailand, with another company in Cyprus or some other more liberal jurisdiction. OnlyFans pays into that company, which then pays the Thai company. Have a good lawyer draft an agreement between the two companies that's compliant with relevant laws.

That's a pretty common setup for people in similar situations and tends to work well as long as the amounts aren't too high. If you climb the rankings of OnlyFans and grow bigger, the amount of revenue risks drawing attention in Thailand and more poking and prodding is done about how the company makes so much money.

So if you're very successful, be prepared to seriously consider leaving Thailand.

Thank you for that! Will look into it a bit more and see if I can make it work!

On the other hand, I’ve been suggested Portugal by some people, as far as I know it has a rule of having to stay in the country for more than 183 days, but there’s also the “non-habitual resident tax regime”, do you think I would be able to wrap up my income in that?

Also do you know of any people offering services in advising for setting up these kind of things in a way that would best work for me?

 

[topshore]

Interesting topic. I wonder what you recommend for OF users who are within the EU and want to avoid paying high taxes?
Any advice or solutions?

 

[Mssquirrel]

Interesting topic. I wonder what you recommend for OF users who are within the EU and want to avoid paying high taxes?
Any advice or solutions?

Someone told me that successfully moved to Andorra but I also know about people that couldn't. I guess depends but not sure on what. Anyways you can't bank there.

 

[mok]

If you live in Thailand, the Thai tax office won't consider your foreign company tax resident (check here in the 'Residence' section.) As such, you will be able to pay taxes for your company in the country where it is incorporated.

In addition, Thailand won't charge personal income tax for income earned from a foreign company that does not enter Thailand (is deposited into a Thai bank account or spent in Thailand) the same year it was earned.

This allows for an interesting double-non-taxation setup with a US LLC.

With a US LLC and Thai personal residency, the US will not levy any tax on the LLC as it is viewed as a pass-through entity (the tax passes through the LLC to the owners.)

Thailand will also not impose tax on the LLC as it is a foreign company.

And as long as you move your money from the LLC into Thailand the next year after it was earned, this is a fully tax-free setup.

 

[BusinessOne]

If you live in Thailand, the Thai tax office won't consider your foreign company tax resident (check here in the 'Residence' section.) As such, you will be able to pay taxes for your company in the country where it is incorporated.

In addition, Thailand won't charge personal income tax for income earned from a foreign company that does not enter Thailand (is deposited into a Thai bank account or spent in Thailand) the same year it was earned.

This allows for an interesting double-non-taxation setup with a US LLC.

With a US LLC and Thai personal residency, the US will not levy any tax on the LLC as it is viewed as a pass-through entity (the tax passes through the LLC to the owners.)

Thailand will also not impose tax on the LLC as it is a foreign company.

And as long as you move your money from the LLC into Thailand the next year after it was earned, this is a fully tax-free setup.

I agree with this. Being a Thailand resident + Using a foreign company + Moving your money to Thailand on the next year should work.

 

[Alonzo]

Interesting topic. I wonder what you recommend for OF users who are within the EU and want to avoid paying high taxes?
Any advice or solutions?

People making adult content have little to no options for lowering their taxes significantly.

Just be happy and pay your taxes in your home country.

Thank you for that! Will look into it a bit more and see if I can make it work!

On the other hand, I’ve been suggested Portugal by some people, as far as I know it has a rule of having to stay in the country for more than 183 days, but there’s also the “non-habitual resident tax regime”, do you think I would be able to wrap up my income in that?

Also do you know of any people offering services in advising for setting up these kind of things in a way that would best work for me?

OF income will be taxed at ordinary rates with NHR.

 

[Rubyraknarin]

People making adult content have little to no options for lowering their taxes significantly.

Just be happy and pay your taxes in your home country.



OF income will be taxed at ordinary rates with NHR.

I would be happy to pay taxes for OF in my home country but it’s not possible as the type of work isn’t legal, hence looking for other solutions.
But would it be possible to obtain a NHR status for the type of work I don’t mind paying taxes

 

[Alonzo]

But would it be possible to obtain a NHR status for the type of work I don’t mind paying taxes

Yes you can obtain NHR status but the OF income will be taxed at ordinary income tax rates. NHR is only beneficial for individuals who earn income abroad (dividend income, rental income,...) or work in Portugal with a qualified professional activity.

It's pretty much useless to apply for this regime.

 

[blizz]

I would be happy to pay taxes for OF in my home country but it’s not possible as the type of work isn’t legal, hence looking for other solutions.

What country is that?

 

[luap]

Cyprus isn't known to enforce the rule of not spending 183 days in any other country, as long as it doesn't create disputes between tax authorities. Spend 60 days in Cyprus, and the rest wherever you like. The country you spend the 183 days is the country that may have an issue, but Thailand isn't particularly known for enforcing or even caring about this.

The chance of enforcement could be a little higher (but still low) as you're Thai, but if the funds go into Revolut/Wise in your partners name, and are spent in Thailand from that foreign debit card, there is almost no chance of any issues arising. Cyprus also seems fine with OF as there are plenty of creators there.

 

[scooterguy]

A good solution for your case might be Romania. It is completely legal to sell, possess and produce pornography, and taxes are low. You and your partner could set up a micro-company and benefit from 1% CIT and 8% dividends tax.

As an added benefit, cost of living is also low, so you could easily split your time between Thailand and Romania and end up spending less than if you were living in Portugal full time.

And you could spend more than 183 days in Thailand without losing your Romanian residency. Just make sure you are renting something in Romania and have a full company set-up with salaries to both of you, paid into Romanian bank accounts.

 

[Mssquirrel]

A good solution for your case might be Romania. It is completely legal to sell, possess and produce pornography, and taxes are low. You and your partner could set up a micro-company and benefit from 1% CIT and 8% dividends tax.

As an added benefit, cost of living is also low, so you could easily split your time between Thailand and Romania and end up spending less than if you were living in Portugal full time.

And you could spend more than 183 days in Thailand without losing your Romanian residency. Just make sure you are renting something in Romania and have a full company set-up with salaries to both of you, paid into Romanian bank accounts.

Probably the best option in Europe.

 

[benbao]

People making adult content have little to no options for lowering their taxes significantly.

Just be happy and pay your taxes in your home country.

Just plain wrong, people in the adult industry have more or less exactly the same options to lower taxes as people outside of adult. You just gotta put some time to structuring it properly, which again you need to do anyway nowadays.

As others have said Romania is the best choice in Europe followed by Bulgaria. Keep in mind that it is also a question of OF compliance as they will only pay to a bank account in a country where you are resident. If you use a company you need to own the company and be resident of the country.

 

[scooterguy]

As others have said Romania is the best choice in Europe followed by Bulgaria. Keep in mind that it is also a question of OF compliance as they will only pay to a bank account in a country where you are resident. If you use a company you need to own the company and be resident of the country.

Selling or producing pornography is illegal in Bulgaria, so that wouldn't work. But I agree that Bulgaria is a great option for mainstream setups.

 

[Mssquirrel]

Just plain wrong, people in the adult industry have more or less exactly the same options to lower taxes as people outside of adult. You just gotta put some time to structuring it properly, which again you need to do anyway nowadays.

As others have said Romania is the best choice in Europe followed by Bulgaria. Keep in mind that it is also a question of OF compliance as they will only pay to a bank account in a country where you are resident. If you use a company you need to own the company and be resident of the country.

It's options but is less than a normal business for sure, as many tax friendly countries are not ok with adult business.
Nah they only ask you for paperwork to prove the company is in your name, doesn't matter if is in your country of residency or not. You can send your money to any bank account in your name they don't really check which bank unless you are based in UK then you should send to a local bank.